Beijing officials met with Walmart (WMT.N) this week to discuss media reports that the U.S. retailer has asked Chinese suppliers to slash prices on their goods to offset the impact of the Trump administration's tariffs, according to social media posts affiliated with state-run broadcaster CCTV.
The posts, published on Wednesday on the Yuyuantantian Weibo account, said the meeting between China's commerce ministry and Walmart representatives was held on March 11. The posts cited sources familiar with the meeting.
A spokesperson from China's commerce ministry said on Thursday that ministry authorities have reached out to Walmart for further information after noticing media reports and receiving feedback from some enterprises.
The ministry did not elaborate on its communication with the company.
A Walmart spokesperson confirmed the meeting took place but offered no further details.
"We will continue to work closely with them (suppliers) to find the best way forward during these uncertain times. We have a strong business in China and are proud of our associates around the world who are delivering for customers and members," Walmart said in an emailed statement.
The meeting was prompted by reports that Walmart had requested some Chinese suppliers to cut their prices by as much as 10% per round of tariffs, essentially shifting the full cost of U.S. tariffs onto these suppliers.
Chinese officials told Walmart that asking suppliers to lower prices might violate contracts and disrupt market order, and referred to potential legal consequences, the Wall Street Journalreported.
Walmart has been working to mitigate the impact of tariffs since U.S. President Donald Trump's first term by diversifying its supply chain and reducing its reliance on China.
However, China remains a significant source for Walmart's discretionary merchandise, such as clothing, electronics, and toys. A substantial portion of these imports, including items like Reebok shoes, Mattel toys, Onn TVs, t-shirts, belts, shoes, and appliances, still come from China, according to recent bill of lading data seen by Reuters.
Walmart also operates its warehouse club chain, Sam's Club, in China, where its popularity with younger customers has made it the market leader.
Last month, Walmart CFO John David Rainey described the tariff situation as unpredictable but manageable for the company.
"That (tariffs) is unpredictable at this point. We feel like we can navigate that very well, but that's something that's uncertain out there," he said.
Rainey also expressed concern about the potential impact on American consumers' wallets, particularly if the United States enters a re-inflationary environment with rising interest rates.
Despite these challenges, analysts believe Walmart is well-positioned to handle the economic environment. The company's scale allows it to maintain low prices, particularly in the grocery sector, where it accounts for one in every four dollars spent in the U.S.
Earlier in March, U.S. Treasury Secretary Scott Bessent expressed confidence that Chinese manufacturers would absorb U.S. tariffs that went into effect last week.
"I am highly confident that the Chinese manufacturers will eat the tariffs, (and) prices won't go up," Bessent told Fox News in an interview.
